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AI-Enhanced Forex News Archive

Professional trading insights from Friday, December 5, 2025

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December 2025

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News Statistics for Friday, December 5, 2025

7
Total Articles
0
Bullish
4
Bearish
3
Neutral

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Archive date: Friday, December 5, 2025

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Forexlive

USD/CAD drops to 100/200 MA as Canada jobs data surprises higher

USD/CAD has declined sharply following stronger-than-expected Canadian employment data, with the pair testing critical support at the convergence of 100 and 200-day moving averages. Canada's employment change surged to 53.6K, significantly exceeding forecasts, while the unemployment rate plummeted to 6.5% from 7.0%, marking the largest drop in recent months. The participation rate decreased to 65.1% from 65.3%, partially explaining the dramatic unemployment rate decline. This robust labor market data has strengthened the Canadian dollar and increased expectations that the Bank of Canada may pause its easing cycle. Technical indicators show the pair approaching a crucial support zone where the 100 and 200-day MAs converge, representing a key inflection point. A decisive break below this level could accelerate CAD gains and push USD/CAD toward the next support at 1.3950, while a bounce could see resistance at 1.4050.
USDCAD
Sentiment: Negative
Source: Finnhub
Forexlive

USD/JPY faces pressure as Japan minister hints at BOJ policy stability

USD/JPY is experiencing downward pressure as Japan's economy minister signals preference for stable monetary policy ahead of the Bank of Japan's December meeting. The minister emphasized that monetary decisions rest with the BOJ while expressing hope for appropriate policy guidance to achieve the 2% inflation target. His comments suggest government reluctance toward near-term rate hikes, potentially delaying BOJ tightening expectations. The minister stressed the importance of stable movements in stock, FX, and bond markets reflecting fundamentals, pledging to monitor market developments with urgency. This dovish stance contrasts with recent hawkish BOJ signals, creating uncertainty for yen traders. Technical levels show USD/JPY testing support near 149.50, with resistance at 150.80. A clearer BOJ policy direction at the December 19 meeting will be crucial for determining whether the pair can sustain its recent range or break decisively in either direction.
USDJPY
Sentiment: Negative
Source: Finnhub
investing.com

USD/JPY carry trade shifts as US-Japan yield divergence narrows

USD/JPY carry trade dynamics are evolving as the yield differential between US and Japanese bonds shows signs of compression, according to recent market analysis. The S&P 500 remains range-bound while investors reassess the attractiveness of yen-funded carry trades amid shifting monetary policy expectations. The narrowing US-Japan yield spread reflects growing speculation about potential BOJ policy normalization and questions about the Federal Reserve's rate trajectory. This convergence is prompting traders to unwind traditional yen carry positions, creating selling pressure on USD/JPY. The US 10-year yield's recent volatility adds complexity to carry trade calculations, while the Dollar Index futures indicate mixed sentiment. Technical indicators suggest USD/JPY may test the 148.50 support level if carry trade unwinding accelerates. Traders should monitor upcoming BOJ communications and US economic data for clearer directional signals on the sustainability of current yield differentials.
USDJPY
Sentiment: Negative
Source: Marketaux
Forexlive

USD/JPY faces pressure as risk sentiment wavers amid AI bubble concerns

USD/JPY remains range-bound near 150.20 as mixed US equity performance and cautious investor sentiment weigh on risk appetite. Major US indices showed divergent patterns yesterday, with tech shares posting marginal gains while broader market momentum stalled. The ongoing debate about potential AI bubble risks has kept traders defensive, limiting appetite for higher-yielding assets. European equities managed to grind higher, but conviction remains low across global markets. The pair's movement reflects broader market uncertainty, with traders awaiting clearer directional cues. Technical indicators suggest consolidation within the 149.80-150.50 range, with the 200-day moving average at 149.95 providing near-term support. A decisive break above 150.50 could target 151.00, while failure to hold above 149.80 might accelerate declines toward 149.20. The calm market conditions suggest potential for increased volatility as year-end positioning intensifies.
USDJPY
Sentiment: Neutral
Source: Finnhub
mottcapitalmanagement.com

USD/JPY carry trade shifts as US-Japan rate divergence narrows

USD/JPY faces structural headwinds as the US-Japan interest rate differential continues to compress, threatening the popular yen carry trade. Rising long-end US Treasury yields have failed to offset concerns about narrowing policy rate gaps between the Federal Reserve and Bank of Japan. Current forward rate markets suggest this convergence will accelerate through 2025, potentially unwinding significant yen short positions estimated at $15 billion. The pair currently trades near 150.00, down from recent highs above 152.00. Volatility remains subdued but positioning data shows increasing nervousness among carry traders. Technical analysis reveals strong resistance at 151.50 (November high) while support emerges at 148.50 (100-day moving average). The shifting rate dynamics could trigger substantial yen strength if US economic data disappoints or BOJ signals earlier policy normalization. Traders should monitor upcoming FOMC and BOJ meetings for policy divergence clarity.
USDJPY
Sentiment: Negative
Source: Marketaux

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